Law on Science and Technology Progress of
the People's Republic of China

The 31st Session of the Standing Committee of the 10th National People's Congress, on 29 December 2007, approved the amended Law on Science and Technology Progress of the People's Republic of China, which will be in effect from 1 July 2008.

The new Law carries 75 articles in 8 chapters, making changes or adding all new provisions in five aspects, namely, construction of innovation country, state's role in crafting and executing IP strategy, more spending on science and technology development, advancement of technological progress in companies and motivation policy for researchers. The Law specifically provides that the state is responsible for crafting and executing IP strategy, establishing and improving IP system, nurturing climate respecting IP, protecting IP by law and encouraging innovation.

Under the Law, contractor of a government-funded research project may elect to retain titles of patent right, copyright for computer software, right for layout design of integrated circuit or right for new variety of plant that are resulted from the research project, except those projects involving national security, national interests and important public interests. The contractor shall achieve practical application of the intellectual property stated above, take protective measures and report its activities in application and protection to the funding agency on the annual basis. Where the contractor fails to achieve application within a reasonable time, the state has the march-in right to achieve application of the intellectual property free of charge, or may grant license to others to achieve application whether with or without charge.